DERC issues draft regulation for green power obligations on discoms

The DERC has released its draft regulations for renewable purchase obligation (RPO), mandating a 29.91 per cent green energy purchase this year for all stakeholders, including discoms, officials said on Monday.

RPOs mandate all electricity distribution licensees to purchase energy from renewable sources.

The Draft Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2024 has been issued by the DERC, which is seeking public comments till July 2, they said.

Under the draft regulations released by the Delhi Electricity Regulatory Commission (DERC), all stakeholders including discoms, must comply with specified RPO targets as a percentage of their total annual consumption.

The DERC has specified an RPO target of 29.91 per cent for 2024-25 and 30.01 per cent for 2025-26, as per the draft regulation.

Non-compliance of the RPO targets will result in a penalty of 10 paise per unit for all obligated entities, officials said.

The distributed RPO targets are in line with the Ministry of Power's notification under Section 14 of the Energy Conservation Act, 2001, dated October 20, 2023. Distributed RPO can be met through solar rooftop net metreing installations, officials said.

The RPOs comprise wind, hydro and other sources of renewable energy.

Eligible consumers can choose green power from several sources, such as purchasing from power exchange through open access, requisitioning from discoms, from captive power plants, purchasing renewable energy certificates, self-generation, among others, they said.